Fitch rates Kimco loans BBB+

Fitch Ratings said it assigned a rating of BBB+ to the $400 million senior unsecured term loan due 2014 announced by Kimco Realty Corp.

Interest on the loan is Libor plus 105 basis points, based on the company's credit ratings.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the repayment of upcoming debt maturities.

The ratings are based on Kimco's solid track record as a leading owner of community and neighborhood shopping centers; the company's large and diversified pool of retail proprieties; its experienced leasing and management team and its high quality, diversified tenant mix with a well laddered lease expiration schedule, the agency said.

The rating also factors in the company's demonstrated track record of accessing a wide variety of capital sources, the agency noted.

Leverage, of net debt to recurring operating EBITDA plus estimated recurring cash distributions from unconsolidated joint ventures, rose slightly to 5.9 times as of Dec. 31, from 5.6x at June 30, 2011 and 6.5x at Dec. 31, 2010.

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